Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Citigroup Inc Delivers 4% Higher Net Income, Surpassing Expectations

Citigroup (NYSE: C  ) today announced $4.2 billion in adjusted net income in the first quarter of 2014, an increase of 4% over the $4.0 billion posted in the first quarter of 2013. In total its net income stood flat at $1.23 per share, surpassing analyst expectations of $1.14. 

Source: Flickr / S_E_Santana.

Citigroup saw its adjusted revenues -- which factor out valuation and other adjustments -- drop slightly, from $20.6 billion to $20.1 billion. Its adjusted expenses fell by 1% year over year to $12.2 billion. The biggest benefit Citi recognized was a substantial decline in its net credit losses, which resulted in its cost of credit dropping from $2.5 billion to $2.0 billion, a decrease of 20%.

Even with its lower revenues, as a result of the declining expenses and dramatically reduced cost of credit in total its income from continuing operations before taxes rose 9%, from $5.5 billion to $6.0 billion.

"Despite a quarter that was difficult for our company, we delivered strong results," noted the CEO of Citi, Michael Corbat, in the press release announcing the earnings. "Both our consumer and institutional businesses performed well and we grew both loans and deposits while holding the line on our expenses."

Citigroup has had a difficult start to 2014. It first announced it would have to reduce its 2013 income by $360 million as a result of fraud from its unit in Mexico. Later it was announced Citigroup did not meet the Federal Reserve's expectations in the CCAR process, denying it permission to raise its dividend and share buyback program as a result of qualitative questions.

"Very cognizant of our shareholders' desire to see a sustainable return of capital, we are engaged with the Fed to better understand their expectations regarding the CCAR process," Corbat continued in his statement. "We are committed to bringing our capital planning process to the highest possible standards, befitting an institution of our global reach. I will dedicate whatever resources and make whatever changes necessary to achieve this critical goal."


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2913978, ~/Articles/ArticleHandler.aspx, 9/4/2015 6:33:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,374.76 23.38 0.14%
S&P 500 1,951.13 2.27 0.12%
NASD 4,733.50 -16.48 -0.35%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 4:00 PM
C $51.79 Up +0.04 +0.08%
Citigroup Inc CAPS Rating: ***